Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Notices 36695

members of the public who use

Fattache ́.

Parts I and II of the proposed order

prohibit the respondents from making

the challenged claims, unless at the time

of the representation, the respondents

possess and rely on competent and

reliable scientific evidence that

substantiates the representation. Part II

of the order also requires that if the

respondents do not have substantiation

for claims made through the use of

consumer testimonials, that the

advertisement disclose the results that

users can generally expect to achieve, or

the limited applicability of the

endorser’s experience to what users can

generally expect to achieve.

Because this matter involves

substances that could be regulated by

the FDA as a food or drug, Part III of the

order includes a ‘‘safe harbor’’ allowing

the respondents to make any claims

approved in any new drug application,

or in any tentative final or final standard

promulgated by that agency. In addition,

Part IV of the proposed order includes

a safe harbor for representations

specifically permitted by regulations

promulgated by the FDA pursuant to the

Nutrition Labeling and Education Act of

1990.

The proposed order also requires the

respondents to maintain materials relied

on to substantiate clams covered by the

order; to provide a copy of the consent

agreement to all employees or

representatives with duties affecting

compliance with the terms of the order;

and to file one or more compliance

reports detailing compliance with the

order.

The purpose of this analysis is to

facilitate public comment on the

proposed order, and it is not intended

to constitute an official interpretation of

the agreement and proposed order, or to

modify in any way their terms.

Benjamin J. Berman.

Acting Secretary.

[FR Doc. 98–17934 Filed 7–6–98; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 972–3071]

Nutrivida, Inc., et al.; Analysis To Aid

Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: The consent agreement in this

matter settles alleged violations of

federal law prohibiting unfair or

deceptive acts or practices or unfair

methods of competition. The attached

Analysis to Aid Public Comment

describes both the allegations in the

draft complaint that accompanies the

consent agreement and the terms of the

consent order—emobodied in the

consent agreement—that would settle

these allegations.

DATES: Comments must be received on

or before September 8, 1998.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Jeffrey Klurfeld or Erika Wodinsky, San

Francisco Regional Office, Federal

Trade Commission, 901 Market Street,

Suite 570, San Francisco, CA. 94103.

(415) 356–5270.

SUPPLEMENTARY INFORMATION: Pursuant

to Section 6(f) of the Federal Trade

Commission Act, 38 Stat. 721, 15 U.S.C.

46 and Section 2.34 of the Commission’s

Rules of Practice (16 CFR 2.34), notice

is hereby given that the above-captioned

consent agreement containing a consent

order to cease and desist, having been

filed with and accepted, subject to final

approval, by the Commission, has been

placed on the public record for a period

of sixty (60) days. The following

Analysis to Aid Public Comment

describes the terms of the consent

agreement, and the allegations in the

complaint. An electronic copy of the

full text of the consent agreement

package can be obtained from the FTC

Home Page (for June 26, 1998), on the

World Wide Web, at ‘‘http://

www.ftc.gov/os/actions97.htm.’’ A

paper copy can be obtained from the

FTC Public Reference Room, Room H–

130, Sixth Street and Pennsylvania

Avenue, NW, Washington, DC 20580,

either in person or by calling (202) 326–

3627. Public comment is invited. Such

comments or views will be considered

by the Commission and will be available

for inspection and copying at its

principal office in accordance with

Section 4.9(b)(6)(ii) of the Commission’s

Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order To

Aid Public Comment

The Federal Trade Commission has

accepted, subject to final approval, an

agreement to a proposed consent order

from Nutrivida Inc. (‘‘Nutrivida’’) and

Frank Huerta, an officer and director of

the company.

The proposed consent order has been

placed on the public record for sixty

(60) days for the receipt of comments by

interested persons. Comments received

during this period will become part of

the public record. After sixty (60) days,

the Commission will again review the

agreement and comments received and

will decide whether it should withdraw

from the agreement and take appropriate

action or make final the agreement’s

proposed order.

This matter concerns Spanish

language television advertisements,

including program length

‘‘infomercials,’’ for the proposed

respondents’ Cartilet shark cartilage

capsules. The Commission’s complaint

alleges that the proposed respondents

made unsubstantiated representations

that: (1) Cartilet shark cartilage capsules

are effective in the symptomatic relief,

treatment, or cure of cancer; (2) Cartilet

shark cartilage capsules are effective in

the symptomatic relief or treatment of

rheumatism, arthritis, diabetes, fibroids,

bursitis, circulatory problems, and cysts;

and (3) testimonial from a consumer

who appears in the advertisements for

Cartilet shark cartilage capsules reflects

the typical or ordinary experience of

members of the public who use the

product. The Commission’s complaint

also alleges that the proposed

respondents falsely represented that

studies prove that Cartilet shark

cartilage capsules are effective in the

symptomatic relief or treatment of

cancer, arthritis, and diabetes and that

the proposed respondents

misrepresented that their infomercial for

the Cartilet shark cartilage capsules was

an independent television program and

not paid advertising.

Paragraph I of the proposed order

prohibits proposed respondents from

representing that Nutrivida’s Cartilet

shark cartilage capsules or any other

product are effective in the symptomatic

relief, treatment, or cure of cancer or

that Nutrivida’s Cartilet shark cartilage

capsules are effective in the

symptomatic relief or treatment of

rheumatism, arthritis, diabetes, fibroids,

bursitis, circulatory problems, and cysts;

unless, at the time the representation is

made, respondents possess and rely

upon competent and reliable scientific

evidence that substantiates the

representation.

Paragraph II of the proposed order

would prohibit for Cartilet shark

cartilage capsules or any food, dietary

supplement, or drug, representations

about the health benefits, performance,

or efficacy of such product unless, at the

time the representation is made,

respondents possess and rely upon

competent and reliable scientific

evidence that substantiates the

representation.

Paragraph III of the proposed order

would prohibit for Cartilet shark

cartilage capsules or any food, dietary

supplement or drug, misrepresentations

about the existence, contents, validity,
36696 Federal Register / Vol. 63, No. 129 /Tuesday, July 7, 1998 / Notices

results, conclusions, or interpretations

of any test, study, or research.

Paragraph IV of the proposed order

would prohibit for any food, dietary

supplement or drug the representation

that the experience represented by any

user testimonial or endorsement of the

product represents the typical or

ordinary experience of members of the

public who use the food, dietary

supplement or drug, unless: at the time

it is made, respondents possess and rely

upon competent and reliable scientific

evidence that substantiates the

representation; or respondents disclose

in the same language as the

predominant language that is used in

the advertisement, clearly and

prominently, and in close proximity to

the endorsement or testimonial, either

(1) what the generally expected results

would be for users of the food, dietary

supplement or drug, or (2) the limited

applicability of the endorser’s

experience to what consumers may

generally expect to achieve, that is, the

consumers should not expect to

experience similar results.

Part V and VI of the proposed order

contain provisions permitting certain

claims that are approved for labeling by

the FDA, either under the Nutrition

Labeling and Education Act, a tentative

or final standard or under any new drug

application approved by the FDA.

Part VII of the proposed order would

require proposed respondents to

disclose ‘‘THE PROGRAM YOU ARE

WATCHING IS A PAID

ADVERTISEMENT FOR [THE

PRODUCT OR SERVICE]’’ in television

advertisements fifteen (15) minutes in

length or longer, and to disclose a

similar audio message in radio

advertisements of fifteen (15) minutes in

length or longer.

Part VIII of the proposed order

contains record keeping requirements

for materials that substantiate, qualify,

or contradict claims covered by the

proposed order. Part IX of the proposed

order requires distribution of a copy of

the order to current and future officers

and agents. Part X provides for

Commission notification upon a change

in the corporate respondent and Part XI

requires Commission notification when

the individual respondent changes his

business or employment. Part XII

requires the proposed respondents to

keep and maintain all records

demonstrating compliance with the

terms and provisions of the order. Part

XIII provides for the termination of the

order after twenty years under certain

circumstances.

The purpose of this analysis is to

facilitate public comment on the

proposed order, and it is not intended

to constitute an official interpretation of

the agreement and proposed order or to

modify in any way their terms.

By direction of the Commission.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–17935 Filed 7–6–98; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 981–0211]

Sky Chefs, Inc., et al.; Analysis To Aid

Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: The consent agreement in this

matter settles alleged violations of

federal law prohibiting unfair or

deceptive acts or practices or unfair

methods of competition. The attached

Analysis to Aid Public Comment

describes both the allegations in the

draft complaint that accompanies the

consent agreement and the terms of the

consent order—embodied in the consent

agreement—that would settle these

allegations.

DATES: Comments must be received on

or before September 8, 1998.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Phillip Broyles, FTC/S–2105,

Washington, DC 20580. (202) 326–2805.

SUPPLEMENTARY INFORMATION: Pursuant

to Section 6(f) of the Federal Trade

Commission Act, 38 Stat. 721, 15 U.S.C.

46 and Section 2.34 of the Commission’s

Rules of Practice (16 CFR 2.34), notice

is hereby given that the above-captioned

consent agreement containing a consent

order to cease and desist, having been

filed with and accepted, subject to final

approval, by the Commission, has been

placed on the public record for a period

of sixty (60) days. The following

Analysis to Aid Public Comment

describes the terms of the consent

agreement, and the allegations in the

complaint. An electronic copy of the

full text of the consent agreement

package can be obtained from the FTC

Home Page (for June 29, 1998), on the

World Wide Web, at ‘‘http://

www.ftc.gov/os/actions97.htm.’’ A

paper copy can be obtained from the

FTC Public Reference Room, Room H–

130, Sixth Street and Pennsylvania

Avenue, NW, Washington, DC 20580,

either in person or by calling (202) 326-

3627. Public comment is invited. Such

comments or views will be considered

by the Commission and will be available

for inspection and copying at its

principal office in accordance with

Section 4.9(b)(6)(ii) of the Commission’s

Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order To

Aid Public Comment

I. Introduction

The Federal Trade Commission

(‘‘Commission’’) has accepted from Sky

Chef, Inc., and its parents, Onex

Corporation and Gerald W. Schwartz

(collectively ‘‘Proposed Respondents’’)

an Agreement Containing Consent Order

(‘‘Proposed Consent Order’’). The

Proposed Consent Order remedies the

likely anticompetitive effects in the

delivery of catering services to airlines

at McCarran International Airport in Las

Vegas, Nevada, that arise from the

proposed acquisition of Ogden Aviation

Food Services, Inc., by Proposed

Respondents.

II. Description of the Parties and the

Transaction

Sky Chefs, Inc., headquartered in

Arlington, Texas, provides catering

services to airlines in the United States

and abroad. Its parent company, Onex

Corporation, operates through a number

of other subsidiaries that are involved in

chain restaurant food service,

electronics manufacturing, and other

businesses. During 1997, Sky Chefs had

total revenues of over $1 billion.

Ogden Corporation, headquartered in

New York, is a global company

providing a wide range of services in the

aviation, entertainment, and energy

industries. Ogden’s wholly-owned

indirect subsidiary, Ogden Aviation

Food Services, Inc., and its whollyowned subsidiary, Ogden Aviation Food

Services (ALC), Inc., operate 11 kitchens

serving in-flight food to more than 85

airlines at a number of locations,

including eight major U.S. airports.

Revenues for in-flight catering in 1997

are reported at $164 million.

On March 6, 1998, the parties signed

a letter of intent contemplating that Sky

Chefs, Inc., would purchase 100% of the

voting common stock of Ogden Aviation

Food Services, Inc., from Ogden

Corporation. On May 7, 1998, the

parties signed a stock purchase

agreement that excluded the assets of

Ogden’s Las Vegas flight kitchen. On

May 22, 1998, Ogden entered into an

agreement to sell the Las Vegas flight

kitchen to Dobbs International Services,

Inc.